MCC 7994 pertains to transactions carried out at video game arcades and entertainment establishments offering interactive games and activities.
High Risk; Restricted
This MCC is considered high-risk due to the nature of video game arcades and entertainment establishments, which can be prone to fraud and illegal activities. Merchants operating under this MCC may face additional scrutiny and are often required to adhere to strict operational guidelines. As a result, transactions under this MCC may be subject to higher fees and restrictions by card issuers.
Interchange Fee
The interchange fee for transactions under MCC 7994 typically ranges from 1.15% to 2.95% depending on the type of card used (e.g., debit or credit), issuer, and merchant processing agreement.
Cashback Rewards
Certain credit cards may offer cashback rewards ranging from 1% to 3% for purchases made at entertainment and gaming venues, which may include video game arcades categorized under MCC 7994.
Rules and Restrictions
There are no special rules or restrictions imposed by payment processors for transactions categorized under MCC 7994. Standard transaction processing guidelines apply.
Tax Reporting
Tax reporting for transactions under MCC 7994 depends on local and federal tax laws. The IRS may require tax reporting on significant purchases depending on the nature of the transaction and applicable regulations.